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Virtovo - Closure of Vancouver services
This message has been sent to all clients. Replicating it here on the off chance that people do not read emails.
We are writing to you today as you have one or more services located in our Vancouver location. We will be closing our Vancouver location on July 19th 2014.
Sadly the location failed to generate enough interest to make it sustainable in the long term, has operated at a loss since launch and has no signs of this changing in the near future.
We understand that this closure may be disruptive to the services which you host with us which is why we have given six weeks notice of this closure to give proper time for you to make arrangements regarding your hosting.
We have extended all Vancouver VPS expiry dates to the 19th so you will not have to pay another invoice in this location and your VPS will be online for six weeks until the 19th.
If any client wishes to move their VPS service to our Miami location we can facilitate this and will increase your bandwidth allocation to 2TB/mo. Please open a ticket with our support department to arrange a convenient time for the move.
Please accept our apologies for any disruption this may cause and hope the time we have given will be sufficient for you to make arrangements for your hosting.
Unless we are notified and have confirmed a transfer to Miami services will be terminated on the 19th July with no chance of restoration.
Regards
Virtovo
Comments
Wasn't this location only opened recently?
Two months ago.
Too bad. Running at a loss for one month doesn't mean loss for a hole year.
Agreed and if there were any signs that this would change we would continue offering the location.
According to your LowEndBox offer you only opened up shop in December of last year?
Your growth is likely to increase with time anyway, as your reputation increases, and I find it a little hard to see why 2 months of service (after having opened the location in your 4 month of running) can provide enough insight for you to pull it.
I'm assuming the cost to run the server is too much for you to take the risk of keeping it running without sufficient growth?
It's a shame as I was actually really interested to see your growth there
.
Long enough, well handled.
Good to see you being up front but next time you should be prepared (financially and mentally) to try something for longer than two months imo.
It was an attempt to offer something niche at low end pricing. Costs are significantly higher than other locations.
Thanks. We'd rather make a tough decision now, than make it later and give less notice than people need.
If there were any signs that this would meet it's targets within 6 months we'd continue with this location; however that simply wasn't the case. I think for many Seattle was 'good enough' and offered more bandwidth than we could offer in Vancouver. We'll continue our growth in Miami before adding any new locations.
Sensible move. This seems to be the thing that catches out a lot of newer hosts these days.
Obviously I don't have all your information and it's your money. Again, you were upfront about it. 2 months is barely enough time to get your feet wet in a new location though. Linode wouldn't pull out of a new location in two months... BurstNET might though.
Guess the lesson is in research.
Never believe in polls - anywhere, period. I understand you decided on this location based on that data. It doesn't work. It might sound exotic, unique, etc, but yeah.
Polls are one thing but they don't (especially the ones on LET) represent the entire market.
Continue with a solid plan. I always start a new project on the basis that it won't do well. Ask the question of if you'll still survive for months if it doesn't. Can't really just keep opening and closing until one works.
Thanks for the advice we'll definitely consider any new locations with a better business head, although Vancouver did not feature on any poll we run.
I guess most of the tight arses on here buy based on cost, so if a server in country A costs $10 and the same server in country B costs $5 for the same specs and if the latency is ~ same or +/- a few ms, the $5 will win out. All this having VPS in exotic locations is just hippy shit.
I have more than a couple boxes in Seattle, but there are some things that I'd like to keep on Canadian soil. Was really looking forward to buying more boxes from you in Vancouver - I just couldn't do it this month, was looking to do it over the next couple weeks. Won't be doing it now..
I think that there is a demand within Vancouver, but the word didn't get out about your service. As someone who lives in Vancouver the only way I knew about it was from let, so marketing could have been as issue. As well 2 months isn't a long time for people to hear about you.
The first month in the vps for all business, Prometeus made 4 sales. Enuff said.
Took Velocity Servers a year to get past 100 game server customers.
I was customer no 76 two and a half months after prometeus started offering those crazy deals :P
Too bad. It's hard to come by servers located in Western Canada.
That's a shame. It was nice to finally see an offer this side of the border instead of in Seattle. It's understandable though.
Peer1 colo is ridiculously expensive sadly.
Lots of providers dont adverstise except for lowendbox/talk and WHT. Every provider should have atleast some marketing budget if they want to survive in this competitve world. Advertising works and thats why people are spending money on it , because it do generates leads which eventually becomes your sale.
Unfortunately, that is a full time job for a few people. I mean, if advertising must work and generate revenue to at least maintain itself in this market through profit generated from own sales, because this is capitalism, the bigger you are, the better you do in advertising, but you lose your soul.
No provider here is of that scale (well, except DO, maybe, but they are not really here nor seem they eager to advertise on this market), there are some doing it, but I am not sure it pays for itself.
On the other hand, low advertising means you can always find some gems not every joe dick and harry know about, good price, good service, away from the world...
Advertising is for mcdonalds, starbucks, carrefour, not for eat at joe and your corner store. The latter dont need advertisement, if you live in the area, you will find them.
I see the situation somewhat similar here, advertising is for godaddy, amazon, linode, people living near LE* will find great prices and quality if they look for it, also, in almost all corners of the world.
@darknyan said:
They were with Backbone Data Vault, which is on W 7th - with a fiber run to Harbour Centre. http://www.thedatavault.ca/
Sad news regarding Canadian location.Although i did not use his service but he is a good user here.Anyway don't lose hope your Miami location is good enough for now.
@mpkossen
Curious.. why did asterisk14 get banned?
Lol, yeah can't say he was the most polite..
According to his profile page, racism.
A racist comment. We have a zero-tolerance policy when it comes to racism. @asterisk14 went way past my red line.